Forex News

The yen started this Thursday’s session in Asia gaining versus currencies regionally and globally, on speculations that local investors are repatriating capital before the Japanese fiscal year ends in the following weeks.

The Aussie profited today from a risk driven scenario in global markets and extended yesterday’s gains after central bankers in the nation said that interest rates may be hiked further this year if the economy continues to recover.

The Japanese yen started this Tuesday’s session down versus most of the 16 main traded currencies as concerns regarding the country’s deflation are fueling speculations that interest rates will be maintained at a record low for a longer period.

The yen was the most affected currency by a new wave of optimism started by EU officials statements suggesting that the bloc will help Greece financially to solve its public debt issues, losing specially versus higher-yielding currencies and the euro.

Despite risk appetite fueling demand for commodities produced in Australia, the Aussie dollar declined after a central bank decision published today showed no rate hikes expected by traders as the country’s economy rebounds.

The Japanese currency ended a rally fueled by risk aversion as a Federal Reserve statement published yesterday brought optimism to financial markets globally, decreasing appeal for refuge investments available in Japan, specially versus high-yielding currencies.

Demand for safety rose today as concerns among investors that Chinese lending limits announced this week by the nation’s government may impact the global economic performance, allowing the yen to beat all of the main traded currencies in foreign-exchange markets today.

The Japanese currency declined in the beginning of this Thursday’s session on Australia’s better than expected employment data, which increased attractiveness for riskier assets as the South Pacific economy recovery improves confidence among traders.

The Australian dollar fell sharply versus lower-yielding currencies today as a real estate report declined optimism regarding the South Pacific economy, in a day were commodities and equities markets which have a strong correlation with the Aussie, declined.

Risk aversion declined significantly today after China set a new reserves requirements for banks in the country, allowing the yen to outperform all of the 16 main traded currencies in foreign-exchange markets, as pessimism surged.